Feeling Happy about Conrad Black.

Posted by: Diane Brady on July 13, 2007

Conrad Black won’t find comfort from the CEO of his old company, Hollinger Inc. “We have believed for some time that the conduct of Mr. Black and his colleagues was criminal,” G. Wesley Voorheis told me this afternoon. “This is a day of vindication for the prosecution and for innocent shareholders who, frankly, have been screwed.”

A Chicago jury found the former media baron guilty of mail fraud and obstruction of justice today, setting the stage for as much as 35 years in jail.

Voorheis says the verdict “puts an end almost conclusively to Conrad Black’s stated intention to regain control of the Hollinger empire.” Moreover, the stay on the company’s lawsuit against Black and other senior officers is now lifted. Hollinger is also suing three Canadian banks—CIBC, Toronto-Dominion Bank and Bank of Nova Scotia—for more than $65 million, arguing that it knew of Black’s misconduct. Its main asset is a 70% voting and 20% equity interest in the Sun-Times Media Group (formerly Hollinger International), which owns The Chicago Sun-Times.

What is Black actually worth at this point? The trial was full of anecdotes about lavish spending on the company dime—from $565,000 trips to Bora Bora to a $62,000 birthday party for his wife, journalist Barbara Amiel. Prosecutors have already seized nearly US$9 million in proceeds from the sale of his apartment in New York and they’ve sought assets like a $2.6 million ring and a $604,000 pearl broach. With huge legal bills and his holding company, Ravelston, in receivership, you have to wonder how much cash Lord Black actually has at his disposal right now.

Reader Comments

RH Pyle

July 15, 2007 7:19 PM

Mr Black has no worries, he need only petition for a commutation. In his tax bracket, Bush will fall all over himself to accomodate poor poor Connie. Id like to say more but I have to make my alimony payment before I serve a 5 yr stretch in one of our ever popular graybar hotels.

drunk

July 15, 2007 8:46 PM

I hope this finally puts an end to the era of CEO corruption and CEO worship. SOX and successful law enforcement should clamp down on future misdeeds, but ethics will probably take a longer time - until a new generation take over.

As to Black's assets, I hope it will be zero out, along with his reputation. He will have lots of spare time to think about the meaning of it all.

Thomas

July 17, 2007 10:52 PM

My only thought to all this is: Compared with the other gifts' costs, Mr. Black really went bargain basement with his wife's $62,000 birthday party. :-)

Thomas

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